Ormil Energy (ASX: OMX) believes that further exploration is warranted in PEL 454, Sydney Basin, after receiving encouraging results from its first coal seam gas exploration well there.
Preliminary core and log analysis indicate the Apex Burragorang DDH1 well intersected 7.8 metres of net coal over 3 main packages, the Bulli seam, Wongawilli and the combined Tongarra and Woonona seams in the Illawarra Coal Measures.
It also appears to have encountered 5.5 metres of potential shale play in the coals.
Ormil has sent 8 coal and 2 shale samples for desorption testing while drill stem testing has indicated permeability in all four test intervals.
Success at Apex Burragorang DDH1 could allow the company to unlock the 1639 billion cubic feet of contingent gas resources that independent consultants MHA Petroleum Consultants believes could be present in the 168 square kilometre permit.
The DDH1 core hole is being drilled as part of Ormil’s farm-in deal with Apex Energy to earn up to a 50% stake in PEL 454.
Ormil is also on the lookout for other projects including new permit applications, joint ventures, farm-ins and corporate deals both within and outside Australia.
The company had A$2.1 million in cash at the end of the December 2011 quarter and expects to spend A$1.2 million this quarter.
Preliminary core and log analysis indicate the Apex Burragorang DDH1 well intersected 7.8 metres of net coal over 3 main packages, the Bulli seam, Wongawilli and the combined Tongarra and Woonona seams in the Illawarra Coal Measures.
It also appears to have encountered 5.5 metres of potential shale play in the coals.
Ormil has sent 8 coal and 2 shale samples for desorption testing while drill stem testing has indicated permeability in all four test intervals.
Success at Apex Burragorang DDH1 could allow the company to unlock the 1639 billion cubic feet of contingent gas resources that independent consultants MHA Petroleum Consultants believes could be present in the 168 square kilometre permit.
The DDH1 core hole is being drilled as part of Ormil’s farm-in deal with Apex Energy to earn up to a 50% stake in PEL 454.
Ormil is also on the lookout for other projects including new permit applications, joint ventures, farm-ins and corporate deals both within and outside Australia.
The company had A$2.1 million in cash at the end of the December 2011 quarter and expects to spend A$1.2 million this quarter.
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